Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please use attachment as a template and show full steps Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges

Please use attachment as a template and show full steps

Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 220,000 pounds of grade 6 oranges and 150,000 pounds of grade 9 oranges on hand. The aver- age quality of oranges sold in bags must be at least 7, and the average quality of the oranges used to produce orange juice must be at least 8. Each pound of oranges that is used for juice yields a revenue of $2.25 and incurs a variable cost (consisting of labor costs, variable overhead costs, inventory costs, and so on) of $1.35. Each pound of oranges sold in bags yields a revenue of $2.00 and incurs a variable cost of $1.20.

a. Determine how Sunblessed can maximize its profit.

b. Use SolverTable to determine how a change in the cost per bag of oranges changes the optimal solution.

c. Use SolverTable to determine how a change in the amount of grade 6 oranges available affects the optimal solution.

d. Use SolverTable to determine how simultaneous changes in the required average quality required for juice and the average quality required for bags change the optimal solution

image text in transcribed

TEMAS 9222222; 10 11 12 UV A Open recovered workbooks? Your recent changes were saved. D L20 xfx A B C D E F 1 Selling oranges and orange juice 3 Revenues, variable costs S Revenue 6 Variable cost 8 Available 13 16 17 21 AD Bags $2.00 $1.20 Grades used to make juice and bags Grade Juice 6 9 Sold 14 Required average quality 15 18 Quality constraints 19 20 Actual 22 Required 23 24 Total variable cost 25 Total revenue 26 27 Profit 28 29 130 31 33 133 34 45 346 Ready P4-50 Model Juice Juice Juice $2.25 $1.35 Bags Bags Bags P4-50 Sensitivity Analysis 3 3 Used +

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions